Liverpool buys stake in Nepal firm

India’s Liverpool Retail has acquired a 33 per cent stake with Momento Apparels. The

Ahmedabad-based garment retailer has entered into a Rs 20 crores deal with the Nepal-based garment company as a part of its backward integration plan. Liverpool was incorporated in 2001 by launching its fashion retail chain across the country under the brand name Liverpool. It ventured into the readymade garments sector in 2006 with a diverse product line of shirts, trousers, T-shirts and men’s and women’s accessories.

The nine-year-old Liverpool which has two casual wear brands, Liverpool and Barcelona, plans to offload 25 per cent stake in the company to raise Rs 150 crores through an IPO in the next two months. Liverpool intends to use the fund for expansion and backward integration. It plans to increase its presence in Tier-II, III cities. Currently, it is in 200 cities, out of which 100 outlets are in Gujarat. The other outlets are in Rajasthan, Madhya Pradesh and Uttar Pradesh. In the next phase, Liverpool plans to focus on states like Tamil Nadu, Andhra Pradesh, Kerala, Karnataka and Maharashtra.

Indian garment companies import from Bangladesh and Nepal, which are known for low-cost production. Importing from Nepal does not attract government duties, and hence acquiring a stake in a Nepalese company is a strategic move.